Topic 3. TOTAL QUALITY MANAGEMENT

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Topic 3. TOTAL QUALITY MANAGEMENT
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I. Introduction

• -- What is quality?
• The totality of features and characteristics of
  a product or service that bear on its ability to
  satisfy stated or implied needs -- ASQC

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Quality Criteria

• User-based
• Fitness of intended use
• Quality is determined by what a customer wants
• Product-based
• A function of a specific, measurable variable and
  that differences in quality reflect differences
  in quantity of some product attribute, such as
  stitches per inch on a shirt, number of cylinders
  in a engine

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Quality Criteria (continuous)

• Manufacturing-based
• The desirable outcome of engineering and
  manufacturing practice, or conformance to
  specification,

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Why quality is important?

• Costs and market share
• Internal failure, external failure, appraisal,
  prevention costs
• Companys reputation
• Product liability
• International implications

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Quality Management History

• Up to 1920 Fredrick W. Taylor --- Concept of
  Scientific Management
• 1920-1940 Inspection QC period
• Pioneers Watter Shewart, Harold Dodge, George
  Edwards, etc.
• 1924 - Statistical process control charts
• 1930 - Tables for acceptance sampling
• 1940s - Statistical sampling techniques

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Quality Management History

• 1940 1960 Statistical QC period
• ASQC (American Society for Quality Control)
• Sampling inspection
• 1950s - Quality assurance/TQC
• Deming (1950) and Juran (1954) introduced
  statistical quality control to Japanese workers.
  Top Japanese managers were convinced that quality
  improvement would open new world market and
  necessary for the survival of their nation

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Quality Management History

• 1950 1970, Japanese quality revolution
• 1950, Deming Award, Japanese National Highest
  Quality Award
• Many businesses in U.S. lost significant market
  share

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Quality Management History

• 1987 Business Week
• Quality, remember it? American manufacturing
  has slumped a long way from the glory days of the
  1950s and 60s when Made in U.S.A. proudly stood
  for the best that industry could turn outWhile
  the Japanese were developing remarkable higher
  standards for a whole host of products, from
  consumer electronics to cars and machines tools,
  many U.S. managers were smugly dozing at the
  switch. Now, aside from aerospace and
  agriculture, there are few markets left where the
  U.S. carries its own weight in international
  trade. For American industry, the message is
  simple. Get better or get beat.

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Quality Management History

• 1980, NBC aired If Japan can, Why cant we?
  -- introduced Deming
• 1980s Quality Revolution in America
• 1984 U.S. government designed October as
  national quality month
• 1987 Congress established the Malcolm Baldrige
  National Quality Award

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The Quality Gurus

• Walter Shewhart
• Father of statistical quality control
• W. Edwards Deming (14 points)
• Joseph M. Juran (Pareto)
• Armand Feigenbaum (TQM)
• Philip B. Crosby (Zero Defects)
• Kaoru Ishikawa (Fishbone Diagram)
• Genichi Taguchi (Taguchi Technique)

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Key Contributors to Quality Management
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Quality Awards

• Malcolm Baldrige National Quality Award (U.S.)
• European Quality Award
• The Deming Prize (Japan)

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Malcolm Baldrige National Quality Award

• 1.0 Leadership (125 points)
• 2.0 Strategic Planning (85 points)
• 3.0 Customer and Market Focus (85 points)
• 4.0 Information and Analysis (85 points)
• 5.0 Human Resource Focus (85 points)
• 6.0 Process Management (85 points)
• 7.0 Business Results (450 points)

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Benefits of Baldrige Competition

• Financial success
• Winners share their knowledge
• The process motivates employees
• The process provides a well-designed quality
  system
• The process requires obtaining data
• The process provides feedback

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European Quality Award

• Prizes intended to identify role models
• Leadership
• Customer focus
• Corporate social responsibility
• People development and involvement
• Results orientation

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The Deming Prize

• Honoring W. Edwards Deming
• Japans highly coveted award
• Main focus on statistical quality control

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Quality Certification

• ISO 9000
• Set of international standards on quality
  management and quality assurance, critical to
  international business
• ISO 14000
• A set of international standards for assessing a
  companys environmental performance

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ISO 9000 Standards

• Requirements
• System requirements
• Management
• Resource
• Realization
• Remedial

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ISO 9000 Quality Management Principles

• Customer focus
• Leadership
• People involvement
• Process approach
• A systems approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships

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ISO 14000

• ISO 14000 - A set of international standards for
  assessing a companys environmental performance
• Standards in three major areas
• Management systems
• Operations
• Environmental systems

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ISO 14000

• Management systems
• Systems development and integration of
  environmental responsibilities into business
  planning
• Operations
• Consumption of natural resources and energy
• Environmental systems
• Measuring, assessing and managing emissions,
  effluents, and other waste

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Six Sigma

• Six sigma A business process for
  improvingquality, reducing costs, and
  increasingcustomer satisfaction.

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Six Sigma

• Statistically
• Having no more than 3.4 defects per million
• Conceptually
• Program designed to reduce defects
• Requires the use of certain tools and techniques

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Six Sigma Programs

• Six Sigma programs
• Improve quality
• Save time
• Cut costs
• Employed in
• Design
• Production
• Service
• Inventory management
• Delivery

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Six Sigma Management

• Providing strong leadership
• Defining performance metrics
• Selecting projects likely to succeed
• Selecting and training appropriate people

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Six Sigma Technical

• Improving process performance
• Reducing variation
• Utilizing statistical models
• Designing a structured improvement strategy

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Six Sigma Team

• Top management
• Program champions
• Master black belts
• Black belts
• Green belts

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Six Sigma Process

• Define
• Measure
• Analyze
• Improve
• Control

DMAIC
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Two parts of quality management

• Quality Control
• Actions directly under the management control to
  improve quality (prevent problem to happen)
• Quality Assurance
• Actions outsider of management control to assure
  quality (problem has already there, you just
  assure that it will not go to customers)

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Traditional concept of quality management

• Responsibility of quality control dept. only
• Rely on the inspection process
• Satisfied with meeting specifications

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Total Quality Management

• A philosophy that involves everyone in an
  organization in a continual effort to improve
  quality and achieve customer satisfaction.

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Elements of TQM

• Continual improvement
• Competitive benchmarking
• Employee empowerment
• Team approach
• Decisions based on facts
• Knowledge of tools
• Supplier quality
• Champion
• Quality at the source
• Suppliers

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The TQM Approach

• Find out what the customer wants
• Design a product or service that meets or exceeds
  customer wants
• Design processes that facilitates doing the job
  right the first time
• Keep track of results
• Extend these concepts to suppliers

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Continuous Improvement

• Philosophy that seeks to make never-ending
  improvements to the process of converting inputs
  into outputs.
• Kaizen Japanese word for continuous
  improvement.

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Quality at the Source

• The philosophy of making each worker responsible
  for the quality of his or her work.

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Obstacles to Implementing TQM

• Lack of
• Company-wide definition of quality
• Strategic plan for change
• Customer focus
• Real employee empowerment
• Strong motivation
• Time to devote to quality initiatives
• Leadership

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Obstacles to Implementing TQM

• Poor inter-organizational communication
• View of quality as a quick fix
• Emphasis on short-term financial results
• Internal political and turf wars

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Deming's 14 points

• 1. create consistency of
• purpose
• 2. lead to promote change
• 3. quality through design
• instead of inspection
• 4. reduce of suppliers, dont buy on price
  alone
• 5. continuously improve product, quality, and
  service

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Deming's 14 points

• 6. institute modern training methods
• 7. emphasize leadership
• 8. drive out fear
• 9. break down barriers between departments
• 10. eliminate numerical goals, slogans, posters
  for the work force

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Deming's 14 points

• 11. using statistical methods to improve quality
  and productivity
• 12. remove barriers to pride of workmanship
• 13. institute a program for retraining people in
  new skills
• 14. put everybody to work on the transformation

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Tools For TQM

• Quality Function Deployment
• Translate customer desire to product and process
  design

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Tools For TQM

• Taguchi Technique
• Quality robustness
• Quality loss function
• Target specification

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Tools For TQM Taguchi Quality loss function
Traditional view is that quality within the LS
and US is good and that the cost of quality
outside this range is constant, where Taguchi
views costs as increasing as variability
increases, so seek to achieve zero defects and
that will truly minimize quality costs.
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Tools For TQM

• Check Sheet

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Tools For TQM

• Run Chart

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Tools For TQM

• Process Flow Charts
• Standard procedure to decompose and describe a
  process

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Tools For TQM

• Cause-and-Effect Diagram
• Tool to systematically identify quality problems

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Tools For TQM

• Pareto Charts
• Distinguish major causes and minor causes of
  quality problems

80 of the problems may be attributed to 20 of
the causes.
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Tools For TQM

• Statistical Process Control (Control Charts)

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Tools For TQM

• Tracking Improvements